Tuesday, November 11, 2014

Rents rise to record high

The average rent in England and Wales now stands at a record of over £650 according to the Rentindex. This is a rise of almost 7% over the last 6 months (this includes seasonal factors). Over the year the rents now stand at 2.7% the level at this time last year which is a full 1.5% above the current inflation level of 1.2%.

The total value of rents was £44.8bn in the year to June – up 5.5 per
cent on a year ago and equivalent to nearly half the UK’s total annual
household expenditure on food.

A word of caution we are now entering a seasonal period of rent deflation as landlords fight to get a tenant in to their rental property rather than going for top dollar preferring instead to avoid the void.

This historically continues until the spring when landlords recover their nerve.